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Cambodia: Minister of Tourism says virus will be as bad, if not worse, than SARs was for industry
Minister of Tourism, Thong Khon, has drawn comparisons between the current COVID-19 outbreak to the Severe Acute Respiratory Syndrome (SARs) pandemic that occurred in 2003 and devastated the tourism industry in Asia.
“Cambodia experienced a dramatic decline in foreign tourist arrivals during the 2003 SARs outbreak and we are seeing a similar reaction with the current COVID-19 virus,” he said.
The ministry has predicted that that Cambodia will experience a reduction of one million tourists this year, resulting in a 10 percent loss of revenue for the sector.
Cambodia welcomed 6.6 million tourists in 2019, a 7 percent increase from the year before. The sector generated approximately $5 billion and accounted for 12 percent of the country’s GDP.
The ministry also said that the Kingdom faces added external pressures due to the China and US trade war and an overall global economic slowdown that may also contribute to the reduction.
“In 2003, with the SARS outbreak, the tourism sector was badly hurt, although this time we are working with the private sector to set out necessary measures to maintain the stability of the sector during this crisis. Measures include the encouragement of domestic tourists through special offers,” Chuk Chumnor, the Ministry of Tourism spokesman recently told Khmer Times.
He added the virus has caused concern throughout the global tourism sector, citing a downturn in Chinese tourists as a major factor.
“Chinese nationals make up a large number of international travellers, so the government’s banning of many outbound tours has seriously affected the world’s tourism industry,” Chumnor said.
A report by the Asian Development Bank, outlining the economic impact of COVID-19, backs this concern up, stating, “Tourism arrivals in many developing Asian economies are expected to decline sharply, as a result of numerous travel bans as well as precautionary behaviour.”
“A major difference between this [COVID-19] outbreak and the SARs outbreak is that the Chinese economy is much larger and more integrated with other Asian countries. Therefore, travel restrictions may result in an even greater economic impact than before,” Yasuyuki Sawada, ADB chief economist explained.
The report outlined one estimate where the cost of the virus could run from between $77 billion to $347 billion, representing 0.1 percent to 0.4 percent of global GDP.
Source: https://www.khmertimeskh.com/50699503/minister-of-tourism-says-virus-will-be-as-bad-if-not-worse-than-sars-was-for-industry